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Tea prices dropped a national average of Rs. 51.69 in May 2019 when compared with the same month a year earlier, with Medium and Low Growns showing the biggest deficit, Forbes and Walker Tea Brokers said yesterday.Releasing its latest report, Forbes and Walker said the national average for the month of May totalled Rs. 539.55 vis-à-vis Rs. 578.23 of April this year, showing a decrease of Rs. 38.68 month on month. In comparison to May 2018, the average of Rs. 591.24 shows a decrease of Rs. 51.69.
Analysing the respective elevational averages for the month of May, High Growns totalling Rs. 504.75 for May recorded a decrease of Rs. 36.22 vis-à-vis Rs. 540.97 of April. Compared to May 2018, a decrease of Rs. 41.46 is recorded YOY, the report said.
Mediums averaging Rs. 473.13 for May have recorded a decrease of Rs. 35.01 vis-à-vis Rs. 508.14 of April. However, compared against May 2018 which recorded Rs. 531.75 shows a sharp decrease of Rs. 58.62. Meanwhile, Low Growns totalling Rs. 569.70 for May have recorded a decrease of Rs. 38.37 vis-à-vis Rs. 608.07 of April. Compared to Rs. 625.31 of May 2018 shows a decrease of Rs. 55.61 year on year.
Analysing the January-May cumulative average of Rs. 574.90, a decrease of Rs. 41.64 is recorded vis-à-vis Rs. 616.54 of January-May 2018.
High Growns for the period January-May of Rs. 552.51 have shown a decrease of Rs. 42.13 vis-à-vis Rs. 594.64 of January-May 2018. Mediums too averaging Rs. 503.08 have shown a decrease of Rs. 55.04 vis-à-vis Rs. 558.12 of January-May 2018. Meanwhile, Low Growns totalling Rs. 601.20 for January-May have shown a decline of Rs. 36.81 vis-à-vis Rs. 638.01 of January-May 2018. Both the month and cumulative averages show a greater decrease in USD terms compared to the corresponding period of 2018 due to the devaluation of Sri Lankan Rupee year on year.
A total of 7.6 M/kgs came up for sale at this week’s Auction, a slightly larger volume compared to the 6.8 M/kgs of the preceding sale. There was less demand particularly for the plainer poor leaf teas, resulting in prices declining fairly substantially.
Ex-Estate offerings totalled one M/kgs. Overall, quality of teas showed a general decline, barring a few brighter BOPs from the Western Region which were barely steady. Most others declined Rs. 20-30 per kg and more. Corresponding BOPF too declined Rs. 30-40 per kg, particularly following quality. A few brighter Nuwara Eliya BOP/BOPFs were firm to irregularly dearer, whilst others declined.
A selection of Uva/Udapussellawa BOPs gained sharply on account of special inquiry, whilst others and BOPF were generally easier to last. CTC BP1s from the High and Medium Growns declined Rs. 10-20 per kg, whilst the corresponding PF1s were generally firm to marginally easier. Low Grown BP1s sold around last levels, whilst PF1s were irregular and lower Rs.10-20 per kg.
Low Growns comprised approximately 3.5 M/kgs in the Leafy/Tippy catalogues. There was fair demand at lower levels. Overall, quality too was mostly lower to previous. In the Leafy catalogue, with the exception of a few improved BOP1/OP1s that held firm, others were lower to last. OP/OPAs too were lower with the high priced teas declining sharply. PEK/PEK1s met with good demand with better made teas together with a fair cross section of below best types being fully firm to dearer.
In the Tippy catalogue, FBOP/FF1s were easier to last. At the lower end too prices were mostly lower to last. In the Premium catalogue, a select range of teas were firm. Others were easier. There was demand from Turkey, CIS, Iraq and Saudi Arabia this week.
